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Risks

Read this before trading.

  • Leverage: at 1000x a 0.05% move liquidates a position and the whole margin is lost. Small moves happen every few seconds.
  • No cancel: once an order is committed it settles at a price you have not seen yet.
  • Queue: if the house is short, winnings wait in the queue with no guaranteed payout date. Net LP equity can be negative.
  • Oracle: prices come from Pyth. A bad or missing price can refund or defer orders, and an oracle failure could affect settlement.
  • Software: the programs are new and have not been audited yet. Bugs can lose funds.
  • Operations: fills, liquidations and payouts depend on keepers and a relayer run by the team. Anyone can perform them after a grace period, but delays are possible.
  • Token: DRAFT has an uncapped supply and emissions dilute holders. It can lose all its value.
  • Governance: parameters can change through a 2-of-3 multisig with a 48-hour time lock (7 days after the first 90 days). A guardian can pause new positions or retire a market; closes, liquidations and withdrawals are never paused.
  • Nothing here is financial advice. Check whether trading derivatives is allowed where you live.